Senate Bill Report — SB 5798, Extending Certain Insurance Notice Requirements (as of January 10, 2024)

Summary

Senate Bill Report on SB 5798, as of January 10, 2024, an act relating to extending the required notice of cancellation or nonrenewal of certain types of insurance policies to 60 days, sponsored by Senators Kuderer, Shewmake, Hasegawa and Wellman. The bill extends the written notice requirement for cancellation or nonrenewal of an auto insurance policy from 20 days to 60 days. It extends the notice requirement for health, and property and casualty insurance policies from 45 days to 60 days. A fiscal note was requested on January 5, 2024, and the effective date is ninety days after adjournment of the session in which the bill is passed.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

                            SENATE BILL REPORT
                                  SB 5798

                                      As of January 10, 2024

Title: An act relating to extending the required notice of cancellation or nonrenewal of certain
     types of insurance policies to 60 days.

Brief Description: Extending certain insurance notice requirements.

Sponsors: Senators Kuderer, Shewmake, Hasegawa and Wellman.

Brief History:
     Committee Activity: Business, Financial Services, Gaming & Trade: 1/11/24.


                                     Brief Summary of Bill
           • Extends the written notice requirement for cancellation or nonrenewal of
             an auto insurance policy from 20 days to 60 days.
           • Extends the written notice requirement for cancellation or nonrenewal of
             health, and property and casualty insurance policies from 45 days to 60
             days.


SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES, GAMING & TRADE

     Staff: Kellee Gunn (786-7429)

     Background: Written Notice Required for the Cancellation or Nonrenewal of an Insurance
     Policy. An insurance contract establishes conditions in which the insurer may cancel or not
     renew an insurance policy. Though the reasons for cancellation or nonrenewal are contract
     dependent, they may be the result of nonpayment, increased risk, excessive claims, or fraud
     or misrepresentation by the insured. By state law, an insurer must give the insured a certain
     number of days written notice prior to the effective date of the cancellation or nonrenewal.
     The amount of written notice an insurer is required to give is dependent on the type of
     insurance policy and whether it is for nonpayment of a premium.




     This analysis was prepared by non-partisan legislative staff for the use of legislative
     members in their deliberations. This analysis is not part of the legislation nor does it
     constitute a statement of legislative intent.

Senate Bill Report                              -1-                                             SB 5798
     The following lists insurance policies and the amount of written notice required to be given
     by the insurer before the effective date of the nonrenewal or cancellation as prescribed
     under Washington State Law:
        • health insurance, and property and casualty insurance policies require 45 days' notice;
        • auto insurance policies require 20 days' notice;
        • fire insurance policies for abandoned and at-risk buildings requires either 5 days’ or
           20 days’ notice, dependent on the situation; and
        • medical malpractice insurance policies require 90 days' notice.

     If there is nonpayment of a premium for a health, property and casualty or medical
     malpractice insurance policy the amount of written notice required is 10 days before the
     effective date of cancellation. If there is nonpayment of a premium for an auto insurance
     policy, or it is within the first 30 days of the contract, the amount of written notice required
     for cancellation by the insurer is also at least 10 days.

     Written notice may be delivered by mail, electronic facsimile, or personal delivery.

     Summary of Bill: The amount of time an insurer must give written notice for either
     cancellation or nonrenewal of an auto insurance policy is extended from 20 days' to 60 days'
     notice before the effective date.

     The amount of time an insurer must give written notice for a cancellation or nonrenewal of
     a health, or property and casualty insurance policy is extended from 45 days' to 60 days'
     notice before the effective date.

     Appropriation: None.

     Fiscal Note: Requested on January 5, 2024.

     Creates Committee/Commission/Task Force that includes Legislative members: No.

     Effective Date: Ninety days after adjournment of session in which bill is passed.




Senate Bill Report                              -2-                                          SB 5798


File and source

File

2024-01-11_a31505_d263780_bill-report-5798-sba-bfgt-24.pdf

Size

7,332 bytes

SHA-256

36fd9c223c4e3ea9af5425f647befeb713343c3fe8d35839e5fbbf3f992b8f2e

Our copy

2024-01-11_a31505_d263780_bill-report-5798-sba-bfgt-24.pdf

Original

app.leg.wa.gov